The MSP, whose goal is to speed up improvement of sustainable crucial minerals provide chains and facilitate monetary and diplomatic assist, could be a chance to enhance environmental requirements and governance in Indonesia’s mineral sector, he informed a press convention in Jakarta.
Indonesia, which has wealthy reserves of minerals reminiscent of nickel, copper and bauxite, is eager to advertise itself as a manufacturing hub for batteries and electrical autos.
The nation has massively expanded its nickel processing trade because it banned exports of unprocessed ore in 2020, however environmentalists have blamed the trade for deforestation, water and air air pollution attributable to smelters.
“I consider this can result in extra funding in Indonesia, and never simply any funding, but additionally funding that advantages communities, that upholds labour legal guidelines, that upholds environmental legal guidelines,” Fernandez stated.
Indonesia is one in every of seven international locations the US would assist to change into a semiconductor hub, he added.
Jakarta has requested Washington for a crucial mineral commerce deal just like the US cope with Japan.
Fernandez stated the dialogue is progressing positively, however declined to present a timeline on when a deal could also be reached.
“We’re very happy with the way in which that our discussions are ongoing. We’ll proceed to develop on these discussions going ahead,” he stated.
Indonesia’s financial ministry didn’t instantly reply to a Reuters request for touch upon the discussions.
(By Fransiska Nangoy and Stefanno Sulaiman; Enhancing by Jan Harvey)